COMMISSION OF THE EUROPEAN COMMUNITIES V ITALY

[2009] EUECJ C-518/06, European Court of Justice, 28 April 2009

Insurance (motor) – Compulsory insurance – Insurers required to offer insurance to all applicants – Whether a restriction on trade between member states

Italian domestic law required motor insurers providing such cover in Italy to accept compulsory insurance risks on the basis of contract terms and insurance rates which were established in advance by them. Guidance was given by Italian law as to the calculation of premiums. The European Court of Justice held that the obligation to insure operated as a restriction on entry to the Italian market by non-Italian insurers even though it applied to all insurers equally, in that it removed their ability to make commercial judgments. However, the court ruled that the restriction was justified, in that it was appropriate to achieve the objective of compulsory motor insurance in Italy and was, therefore, valid.